Credit Card For Student

A Credit Card For Student

For most students their first experience with credit cards is either through parents co-signing their student credit card applications or alternatively, providing them with a companion card to their personal credit card account.

For other college students there is the option of obtaining their own student credit card - which is a growing trend among credit card companies who realise the long-term value of nurturing long-term loyalty among students.

College student credit cards are an important financial tool for students, especially since a student credit card will present the first real opportunity for engaging in the practicalities of independent living while learning the value and responsibilities that go hand in hand with financial self-management.

It therefore come as no surprise that students are exposed to intensive on-campus recruitment advertising by credit card companies who offer freebies such as food, clothing, computers and other enticements for on-the-spot sign-ups. But how do you as a student go about choosing the best college student credit card offer from the countless numbers that are constantly being pushed under your nose?

If you're looking for a credit card for student life, perhaps the first thing you will need to learn is how to differentiate between the different credit cards for students that are on offer. Not an easy thing to do when you consider that statistics show that on average, each student will receive college student credit card offers of between 5-7 cards in the first week of college.

However, while on the one hand freebies with a student credit cards might seem a really tempting proposition, don't allow yourself to be swayed by these. The chances are that by shopping around you will most probably find far better students credit card deals than those being presented to you.

Choosing Low Interest Rate Credit Card For Student Life

One of your first and most important considerations when choosing a credit card for student life, is the rate of interest you will pay on your student card and the types of student credit cards.

The interest rate on a credit card for student will be far higher than for other cards, on account that students have not yet proven themselves with managing credit card credit nor the repayment of loans responsibly. Without this credit history logged at the credit reference agency or credit bureau, students are not yet on the credit card/credit map.

Those students who have income or who have some former credit standing, will have already established a credit history and this will count favourably in helping them to secure the lowest credit card rates.

There are many a credit card for student, offering 0% introductory rates - typically for the first 6-12 months. If you don't have a track record with credit though, the pickings will be limited. Again, the advice from money experts is to aim for a credit card for student life that has an annual percentage rate (APR) in the region of 16% - 17% or lower if you can.

If it is the case that you have not yet established a credit history, as is the case with many students who have had no prior experience with credit, this should not however prevent you from still securing reasonably low interest rate credit cards or even prepaid credit debit cards.

The general advice offered from some financial experts is that when deciding on a credit card for student life, choose cards for which you qualify, that boast the lowest credit card rates that will apply after the initial sign up period has expired.

No matter how tempting the incentives on a credit card for student offer is, you should avoid at all cost a student credit card that carry an APR of over 20%. Otherwise you run the risk of running up student credit card debt on these high Apr student credit cards.

The content on this site is purely for information purposes only and is not intended to replace your seeking professional financial advice.

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